Now that you’ve filed your 2013 federal income taxes, or have at least requested an extension to file, let’s take a look at what’s different for 2014 from last year. Having a good understanding of the changes will help you plan for 2014.
Tax Rates: Tax rates for 2014 have changed. View the updated tax rate in this Forbes article.
Standard Deductions: Standard deductions increase to $6,200 for single taxpayers, $12,400 for married taxpayers filing joint returns and $9,100 for heads of household. In 2013, standard deductions were $6,100, $12,200 and $8,950, respectively.
Personal Exemptions: For 2014, the personal exemption increases to $3,950, a $50 increase from 2013. Phase-outs for personal exemptions begins with an adjusted gross income, or AGI, of $254,200 for single taxpayers and $305,050 for married taxpayers filing joint returns. The exemption phases out completely at an AGI of $376,700 for single taxpayers and $427,550 for married taxpayers filing joint returns.
Alternative Minimum Tax Exemption: The AMT exemption for 2014 is $52,800 (vs. $51,900 in 2013) for single taxpayers and $82,100 (vs. $80,800 in 2013) for married couples filing joint returns.
In our next post, we’ll look at some of the other 2014 tax credits, exemptions and exclusions. In the meantime, if you have questions about any of this information or want to discuss tax planning for 2014, please give us a call at 206-386-5455 or email us. One of our tax planning experts would be happy to help.
To your wealth,
Joseph M. Maas, CFA, CVA, ABAR, CM&AA, CFP®, ChFC, CLU®, MSFS, CCIM
President of Synergetic Finance